Edited by Clive Goldthorp
Got a story, or link to one on the web? Email Clive at news@austin-rover.co.uk.
Top stories
1 October: New Hydragas resource...
2 October: SsangYong Wz: MG's potential
BMW contender?
3 October: Kevin Howe unearthed...
4 October: SMC now taking orders
for the TF
9 October: News digest
10 October: MG franchise for Wilcox
of Wickwar
11 October: Triumph TR is back!
12 October: News digest
13 October: Jaguar's X-TYPE facelifted
14 October: News digest
29 October: NAC-MG's first concept
car
30 October: News digest
News digest
Compiled by CLIVE GOLDTHORP
The Sale Of Jaguar And Land Rover
JLR to be under new ownership by 2008?
Fight for Jaguar and Land Rover narrows
Louise Armitstead and Dominic O’Connell, The Sunday Times 28th October,
2007
INDIA’s Tata Group is set for a battle royal with One Equity
over Jaguar and Land Rover, the two British marques that have been put up for
sale by Ford. Second-round bids for the famous brands are due in tomorrow and
City sources say the field, currently comprising six contenders, is likely to
narrow quickly to just two.
Tata, headed by Ratan Tata, is expected to lead the race, but will
face stiff competition from One Equity, the private-equity arm of American bank
JP Morgan. The One Equity bid is being led by Jac Nasser, the charismatic former
chief executive of Ford. All interested parties have toured the two companies’
plants and seen the new Jaguar XF, a model that will go on sale in March and
is regarded as crucial to the marque’s future. City sources say the sale
has been complicated by delays in striking future supply agreements with Ford,
which provides engines to both marques, and by uncertainty over European Commission
plans for a limit on CO2 emissions. The mooted limits would make life difficult
for the companies’ new owner, as Jaguar and Land Rover models tend to
have high carbon-dioxide emissions.
The sale of Jaguar and Land Rover is part of a radical reshaping
of Ford, which is struggling to return to profitability in the face of crippling
healthcare and pension costs and competition from foreign carmakers. Earlier
this year it sold Aston Martin and it is expected to sell Volvo, the Swedish
car group.
Ford weighs up rival offers for UK brands
By John Reed and Martin Arnold in London and Joseph Leahy in Mumbai, The Financial
Times 30th October, 2007
Ford Motor is weighing up preliminary non-binding offers from
Tata Motors and at least four private equity groups for Jaguar and Land Rover
after Monday’s deadline. The Indian carmaker, alongside Cerberus Capital
Management, TPG, Terra Firma, and One Equity Partners, is understood to have
made offers for Ford’s two UK premium brands.
India’s Mahindra & Mahindra and buy-out group Ripplewood
Holdings also made indicative bids for Jaguar and Land Rover in July, but it
was not clear on Monday whether they would make second-round offers. Financial
terms of the offers were not available on Monday, and none of the bidders nor
Ford are commenting on the sale. Ford, which says it wants to sell the carmakers
by the end of this year or the beginning of 2008, is now expected to whittle
the bidders down to a shortlist in coming weeks. However, tougher credit markets
have altered the conditions for its auction of the brands, as have signals of
stricter carbon dioxide emissions standards for cars coming from the European
Union.
Internal divisions within Ford’s executive ranks over the
brands’ future are also complicating the sale, say people familiar with
it. Tata is among the bidders asking the US carmaker to keep a large minority
stake in the brands, whose large-engined cars face a serious regulatory EU threat.
Last week, the European Parliament outlined a tougher-than-expected CO2 target
of 125 grams per km it expects carmakers to reach by 2015.
Ford retained a minority stake in Aston Martin after selling majority
control to a Kuwaiti-backed consortium this year. Its continued presence in
Jaguar and Land Rover would allow the brands’ future owners to pool their
vehicles with Ford’s lower-emission fleet when calculating the brands’
average emissions for regulatory purposes. However, Ford executives are divided
on the sale. Chief executive Alan Mulally favours a clean break with the brands,
but some of Ford’s European executives favour keeping closer ties with
them amid signs that both are on the rebound.
Land Rover is profitable and selling record numbers of its vehicles
this year, and even Jaguar is losing less money than projected.
MINI
Fiat and Mercedes plan tie-up
Hilton Holloway, Autocar 26th October, 2007
Fiat and Mercedes-Benz are in talks to develop a new range of small
cars, according to industry reports. Despite strong indications over the summer
that BMW and Mercedes were poised to announce a small-car deal, it now seems
possible that Fiat could help the German manufacturer replace its unprofitable
A- and B-class models.
Although it would not comment on the specifics of the Fiat talks,
Mercedes’ parent company Daimler AG said that it was “ready in principle”
to work with other car makers on “projects of mutual interest”.
Mercedes’ interest is likely to be focused on the next-generation Fiat
Grande Punto platform (which is long enough to replace the B-class) and Fiat’s
small petrol and diesel engines.
This chassis could also underpin much-needed new models for the
Smart brand, such as a replacement for the short-lived ForFour and the stillborn
baby SUV project. Any deal with Fiat would be a blow to BMW, which ideally also
needs a partner to develop a new Mini family for 2010 and beyond, and had been
rumoured to be in talks with Mercedes itself.
With sales of the current Mini range unlikely to exceed 260,000
units, the unit cost of a car built on a unique platform will be higher than
acceptable for a company dedicated to saving billions of euros over the next
few years.
The SAIC Group/Roewe
GM to open lab for green cars
By Gong Zhengzheng, China Daily 30th October, 2007
US carmaker General Motors said yesterday it will open a research
lab in Shanghai and work with its Chinese partner SAIC Motor Corp to develop
cars powered by alternative fuels for the world's No 2 vehicle market. The GM
Center for Advanced Science & Research, to be part of a new $250million
GM campus in Shanghai, will look into developing alternative-fuel cars, including
plug-in hybrids, bio-fuel and fuel-cell vehicles, Rick Wagoner, the group's
chief executive officer, said at a press conference in Beijing.
The first phase of construction will be completed late next year,
according to Wagoner. The center is expected to employ 1,500 engineers and scientists
when fully staffed. This plan will "accelerate research in the areas of
energy-efficient and environmentally friendly automotive technologies, as well
as alternative fuel pathways that are socially responsible, economically viable,
environmentally sustainable, and technologically feasible", he said. "We
see China as being among the first markets and production sites for alternative
propulsion systems - including the new flexible fuel, plug-in type of electric
vehicles currently under development by GM."
SAIC President Chen Hong said the firm's production of electric-fuel
hybrid vehicles under its own and GM brands and will reach 10,000 units by 2010.
The plan comes as fuel prices in China are expected to increase sharply following
hikes in world crude prices and a widely anticipated fuel tax next year. Many
Chinese brands, including Chery, Geely and Chang'an, are also developing alternative-fuel
vehicles.
Separately, GM and SAIC will jointly offer a $5 million grant in
the next five years to research clean energy with Tsinghua University, China's
premier research institution based in Beijing, Wagoner said. GM, one of the
top two market leaders along with Germany's Volkswagen, said its China sales
grew by 17.2 percent to 753,686 units in the first three quarters of this year.
Meanwhile, sales of all China-made vehicles surged by almost a
quarter to 6.46 million units, according to industry data. Wagoner said China
will overtake the United States as the world's biggest vehicle market in the
next decade.
Back to top
NAC-MG's first concept car
CHRIS CHAPMAN and CLIVE GOLDTHORP
Car Design News has recently reported on the 2007 China
Automotive Design Conference, which was the first occasion on which Designers
from many of the nascent Chinese OEMs had met to discuss the need for ‘independent
innovation’ in Chinese automotive styling.
The China Automotive Design Conference was held in Nanjing, Jiangsu
at the end of August and was attended by 140 design professionals from the likes
of Dongfeng Motor, First Auto Works (FAW), SAIC Motor, Brilliance, Chang’an,
Chery, Geely and Nanjing Automobile (NAC).
NAC’s Design Director, Li-Chih Fu, was one of several Designers
to speak at the conference and, during his presentation; he revealed a full-size
hatchback concept, which was, reportedly, inspired by the city of Nanjing’s
symbolic ‘Pi Xie’ statue. Car Design News commented that Li-Chih
Fu’s concept ‘demonstrated an interesting way of blending negative
surfaces with stylistic curved edges to create a balance between Chinese decoration
and modern solidity.’
Car Design News’ report gives no indication about
whether the ‘Pi Xie Concept’ might be intended for production and,
if so, whether any production version might have an MG badge. However, AR’s
Editorial Team reckon that this concept does, at least, demonstrate that NAC
appear to be developing products to succeed the MG-Rover-derived models currently
being readied for production.
Back to top
News digest
Compiled by CLIVE GOLDTHORP
The Sale Of Jaguar And Land Rover: Queues form to buy expensive
Land Rovers
By John Cranage, Automotive Correspondent, Independent
Land Rover is celebrating its best sales performance in 714 months
of production as wealthy Russians and Chinese queue up to buy its most expensive
models. The Solihull 4x4 specialist has been buoyed by figures showing that
global sales rose by 34 per cent to nearly 26,000 units in September. The numbers
show that the company, the world's only specialist manufacturer of all-terrain
vehicles, has not been affected either by uncertainty over ownership or the
prospect of big tax rises on its products as a result of pressure from environmental
campaigners.
But what effect the continuing sales boom will have on parent group
Ford's decision about whether or not to sell the company along with Jaguar cannot
be estimated, one automotive industry expert said yesterday. The two West Midland
luxury carmakers are on the market. Ford is expected to announce its decision
on whether to press ahead with a sale or not either later this year or early
next year.
'The key to Land Rover is not so much volumes, but the fact that
it is making a profit,' the industry expert, who asked not to be named, said
yesterday. 'But Ford has had to bundle it up with Jaguar to make the sale of
Jaguar, which it probably really does want to ditch, more attractive. The question
is whether or not these latest sales figures will make Ford think again about
a sale.
'The glib answer is yes - but in reality the situation is much
more complicated than that and ultimately they may just serve to make Land Rover
and Jaguar a more attractive proposition.' Figures published last week showed
Land Rover making strong gains in the UK and the US, its two main markets, thanks
mainly to appeal of the new second generation entry-level Freelander model which
it builds at Ford's Halewood factory on Merseyside. In Russia, though, sales
rose by 105 per cent to 1113 units last month, while year-to-date sales were
94 per cent ahead at 8277.
China, a market that Land Rover entered only about three years
ago, saw sales of 715 vehicles in September, a rise of 249 per cent. Over the
first nine months of the year, sales were 102 per cent ahead at 4286 units.
All four of Land Rover's volume models are selling well in these markets, but
demand is particularly high for high-specification, high-margin, variants of
the flagship Range Rover and Range Rover Sport which compete with luxury cars
from the likes of Mercedes-Benz, BMW and Bentley and off-roaders such as the
BMW X5 and Porsche Cayenne.
The mid-range Discovery and the smaller Freelander, meanwhile,
are taking sales away from the likes of the Toyota Land Cruiser, the Honda CRV
and the Toyota RAV4. Land Rover managing director Phil Popham said: 'This is
a great achievement and it's always satisfying to break past records. We can
now approach our 60th anniversary with confidence. I want to see the business
move forwards responsibly, profitably and in a sustainable manner. We're on
track with plans to fit technology to improve the environmental performance
of our cars and we've given a hint of new, exciting designs. A great future
is shaping up.'
Meanwhile MINI was also celebrating record global monthly sales.
BMW said it sold a total of 23,805 Minis in September, an increase of 31.2 per
cent compared with the same month last year. It was the highest figure for a
single month since the Oxford-built Mini went on sale in July 2001. It has put
the brand 12.3 per cent ahead over the year so far with total sales of 164,891
units and on course to sell more than 220,000 by December 31.
Rolls-Royce, BMW's second British brand, delivered 120 cars to
customers last month, 60 per cent more than in September 2006. Year-to-date
sales were 22 per cent ahead at 579.
Buyout firm would cut Jaguar capacity
By Danny Fortson, The Independent 9th October, 2007
Ripplewood Holdings, the New York buyout giant stalking Land Rover
and Jaguar, would return the latter to its roots as a low-volume luxury car
maker and seek to increase sales and manufacturing for both marques in emerging
markets, with a special focus on China. If it wins the auction for the two groups,
the buyout firm envisages abandoning Ford's original ambition to make Jaguar
into a volume luxury car maker. Instead, it would aim to produce between 60,000
and 75,000 cars per year; down from more than 100,000 it can produce at capacity
now.
The private equity firm would seek to maintain current production
levels at Land Rover. Thomas Stallkamp, an industrial partner at Ripplewood,
said: 'The opportunities in the rest of the world, on the Continent and in Asia
have been underplayed. There is room to remix some of the sales in those markets
that are clearly more favourable in terms of currency and profitability.'
The other bidders still vying for the two marques are TPG Capital,
One Equity Partners, and India's Tata Motors. Ripplewood has hired Sir Nick
Scheele, the former chairman of Jaguar, to lead its bidding team. The firm has
no plans to cut jobs in the UK. 'We are very aware of the labour sensitivities
in the UK,' Mr Stallkamp said.
Marcos Engineering appoints administrator
Marcos
Engineering Limited announced that it has entered Administration with a view
to completion of existing work in progress. Marcos' plan of dissolution will
see the Company wind up its ongoing business activities, sell its assets and
distribute proceeds and beneficial interests to shareholders and creditors as
soon as practicable.
In reaching this decision the Company considered a number of factors
including the Company's current and future strategic and market opportunities
and business prospects, limits on new capital from outside sources, increasing
cost of ongoing capital and prevailing economic conditions.
Marcos was founded in 1959 and went into receivership in 2000.
The Company was restarted in 2002, conducting business as an independent supplier
of a new high performance family of hand built lightweight sports cars that
provide a uniquely exhilarating driving experience. Despite mounting competition
from companies with substantially greater financial, technical, distribution
and marketing resources Marcos continued to develop its sports cars that received
international acclaim.
As the cost of capital continued to climb and the potential for
profit faded, the Company's Board and management took steps to minimize product
and operational costs while they investigated various strategic opportunities
and engaged in discussions regarding lower cost distribution, alternate manufacturing
and external capital transactions with potential business partners. After reviewing
Marcos's business prospects and potential opportunities, the Company came to
the conclusion that Administration of the Company would have the highest probability
of returning the greatest value to its shareholders and creditors.
'Regrettably, despite the extraordinary efforts of our employees,
suppliers and dealers, we simply could not attain a profit point, reduce our
cost base or raise the necessary capital to sustain the business', said Tony
Stelliga, Managing Director. 'My sincerest gratitude goes out to everyone that
worked relentlessly to revive the Great British Sports Car Company one final
time.'
The SAIC Group/Yuejin Group Merger.
US plans for MG revival now on indefinite hold
Paul Monies, The Oklahoman 10th October, 2007
A government-mandated consolidation of the Chinese auto industry
has put on hold a project to build MG sports cars in Oklahoma, one of the dealmakers
said Tuesday. But Norman attorney Marc Nuttle, who formed Oklahoma Global Motors
LLC with China's Nanjing Automobile Group Corp., said he still hopes the project
will get a green light from the Chinese government by the end of the year. Nanjing
is merging with larger rival Shanghai Automotive Industry Corp.
'Right now, they're in restructuring mode, and I don't know what
they're going to do,' Nuttle said. 'They merged with Shanghai, and there's nothing
we can do about it. It's not Oklahoma's or the Chickasaw's fault; that's the
state of international business.'
The MG auto plant was to be north of Ardmore on tribal land owned
by the Chickasaw Nation and next to the Ardmore Airpark. The project was expected
to create up to 500 jobs, including several in Norman and Oklahoma City. Nuttle
stopped short of calling the MG deal dead. 'They still contact me on a regular
basis to let me know they're still interested,” Nuttle said of his Chinese
partners. "There's nothing I can do to help them until they restructure
the company.'
Nuttle said an upcoming Chinese Communist Party conference —
which opens next week — may provide some clues to the direction of the
restructuring effort in the Chinese automobile industry. There are more than
127 Chinese auto manufacturers, but the Chinese government wants just eight,
Nuttle said. He said other possibilities for Ardmore wouldn't be dismissed while
the MG project is on 'indefinite hold.'
'We're talking to other companies, and there are companies that
would like to come here, but the MG brand was a key component to the business
plan,' Nuttle said. Nuttle made his remarks at Global Fusion Oklahoma, an international
business conference being held this week in Oklahoma City.
Back to top
Jaguar's X-TYPE facelifted
Autocar
Jaguar’s X-type saloon is set to receive a fresh look that
mimics the styling of its big brother, the XJ.
The new 2008 X-type makes its debut at the Tokyo motor show later
this month. It’s not just the styling that’s different, either;
almost 500 components have changed in the car, and the 2.2-litre diesel will
be available with an automatic gearbox for the first time. That should broaden
the car’s appeal, especially as prices remain close to those of the current
car.
But the X-type will no longer be available in America from March
2008, when the new XF saloon goes on sale. The smallest Jaguar has struggled
to sell in the numbers required in the US, and as of December this year, production
of US-model cars will stop. The new 2.2-litre diesel automatic will cost from
from £22,500 for the saloon and £23,900 for the estate when the
revised car goes on sale in the UK in March.
Back to top
News digest
Compiled by CLIVE GOLDTHORP
The Sale Of Jaguar And Land Rover
The sale of JLR is getting closer...
'Serious bidders' interested in Jaguar and Land Rover,
Birmingham Post 5th October, 2007
Some 'very serious bidders' have put in offers for Jaguar and Land
Rover, Ford group chairman Bill Ford said yesterday. With the deadline for offers
for the two West Midland luxury car marques now only weeks away, the Detroit-based
group, which is fighting for survival in its home North American markets, has
been encouraged by the response to proposals to sell JLR.
Mr. Ford gave no indication of when a deal, if any, is likely to
be concluded, saying the process was ongoing. But he added: 'We've got a lot
of active interest. We are speaking to the bidders and we're really encouraged
by how much interest there has been by very serious bidders.' It emerged a few
days ago that Terra Firma, the private equity group led by City of London financier
Guy Hands, had requested sale documents from Ford. Other PE bidders are Cerberus
Capital Management, TPG, Ripplewood and One Equity.
Former Ford executives Sir Nick Scheele, Bob Dover and Jac Nasser
are advising TPG, Ripplewood and One Equity respectively. Indian industrial
group Tata, which owns steelmaker Corus in the UK, is being touted as a front-runner
to take control of JLR. But Ford is believed to be reluctant to sell to an established
manufacturer on the grounds it would be more likely to 'lift and shift' production
abroad than a private equity owner.
The position of Volvo, the third surviving member of Ford's Premier
Automotive Group stable of luxury European brands following the sale of Aston
Martin, is still unclear. Mr Ford said yesterday that the company was reviewing
its options on Volvo and had not decided on whether to sell or not. He also
said that Ford was 'very prepared to get going' in its talks with the United
Auto Workers union on a new four-year contract. A deal to slash its crippling
pension and healthcare legacy costs is vital if Ford's survival plan, which
has resulted in more than a dozen North American plants being closed along with
the loss of thousands of jobs, is to succeed.
Its Detroit rival General Motors, which has faced the same the
problems but which is further down the road to recovery, recently struck a cost-cutting
new deal with the UAW. Ford is "still learning all the details" of
the GM deal, 'but the broad framework is certainly something we can work with',
Mr Ford said.
GM and the UAW agreed on the terms of a new deal that involves
significant wage and benefits restructuring, as well as a commitment by the
carmaker to invest in the US. The agreement also included the establishment
of a trust, known as a voluntary employees' beneficiary association, or VEBA,
that will absorb tens of billions of dollars worth of retiree health care liabilities.
Asked about the VEBA, Mr Ford said: 'It's a model we find very interesting.
Obviously it’s something we will be discussing with the UAW.'
Ford extends bid deadline for Jaguar and Land Rover
Daily Telegraph 9th October, 2007.
By RUSSELL HOTTEN
Ford's deadline for offers for its Jaguar and Land Rover divisions
has slipped again, fuelling concern among potential buyers that they are spending
millions on preparing bids despite getting no guarantee that the US car giant
is determined to sell. Indicative offers for the two British marques were expected
to be delivered by next week, but Ford has now given the private equity and
trade buyers which have registered an interest until early next month to begin
tabling bids.
While Ford has said that it is minded to dispose of Jaguar and
Land Rover, some possible buyers have noted a lack of commitment. 'It's a slow
process, perhaps too slow. It all costs money and time,' said an adviser to
one of the interested companies. Bill Ford, the US company's chairman, said
last week that some 'very serious bidders' had shown interest in Jaguar and
Land Rover. But he declined to give any timescale about when, if at all, a sale
could be agreed.
Several private equity firms, including Cerberus, TPG, Ripplewood,
and One Equity, are looking at the British marques. Tata, the Indian conglomerate,
was thought to be front-runner among trade buyers. However, there has been speculation
that Tata only wants Land Rover, not Jaguar, and also that Ford is reluctant
to sell to an established manufacturer. Of the private equity bidders, Ripplewood
has the most automotive experience. It owns Honsel International Technologies,
a supplier to Daimler, BMW, VW/Audi and Ford; and U-Shin, the Japanese supplier
to Mazda and Suzuki. Other investments include automotive dealerships such as
Asbury Automotive, the fourth-largest dealership group in the US, which sells
Land Rovers and Jaguar cars.
Ripplewood's Tom Stallkamp, a former president of Daimler, revealed
to The Daily Telegraph recently that his firm has ambitions to grow the Jaguar
and Land Rover brands in emerging markets such as China. He also said 'Ripplewood
would like to continue full operations in the UK', which will please the trades
unions worried about the two marques falling into the hands of private equity.
"We have shown with our other automotive investments that we take a longer
horizon," Mr Stallkamp said.
Ford's decision to push back its deadline may increase suspicion
that the credit crunch has made life harder for private equity. But Mr Stallkamp
said that "private equity has no trouble raising money for good assets"
like Jaguar and Land Rover.
The Re-Launch Of MG.
MG gets a new web presence
Birmingham Post 9th October, 2007
A new online identity for legendary car brand MG has been unveiled.
Birmingham-based design agency Clusta won a four-way tender to create a new
website for the re-launch of the iconic sports car. The site has been rolled
out in phases, the initial part going live in May and immediately attracting
up to 35,000 visits every day. But, with the main bulk of the site launched
to the public last week the number of hits is expected to rise even higher.
The initial phase formed a stepping stone between the old identity
and the new one. Since May, both the corporate identity and the company have
developed further, resulting in the need for phase two of the site. The second
phase depicts MG's brand new online identity - in turn derived from the company's
new corporate face. The site will feature details of the different vehicles
on offer from the revitalised sports car manufacturer, with further features
set to be added over time.
The site is built in Flash, a first for MG. According to Clusta,
this was a bold but essential step by the company to move the brand on, through
an experience focused site. The design firm says the new site will ensure that
the user can engage with the product and immerse themselves in the MG brand,
while still finding navigation simple and easily accessing the information on
offer. A html mirror site is also being included to guarantee the site is available
to all.
Matthew Clugston, creative director of Clusta, said: 'MG has a
great heritage but must portray itself as a modern and vibrant brand. We’re
at the level where the web doesn't limit our creative abilities, so the site
will start working to re-educate people about the brand from the outset. We
wanted a web environment that reflected the company's new brand, was engaging
and easy to navigate and had a modern feel. In addition to web design, we work
extensively in video production, post production and 3D visualisation. Web and
video are no longer distinct, so we often combine these skills in our rich media
work, which is evident in the new MG site, to both engage the user and to better
present information.'
MG marketing manager Peter Brooking added: 'We regard our website
as probably the key communication channel for us during the re-launch of MG
in the UK - it allows us to keep potential customers and fans of MG up to date
with developments as they happen. When we were looking to appoint a web agency,
one of the key criteria was to ensure that they had a clear understanding of
MG's past and where we are going in the future. Clusta has fully met our requirements
and developed a site with us that is fresh, exciting and very different from
other car manufacturers.'
Clusta often works in collaborative arrangements with above the
line agencies in order to fully serve the client. On the MG account, Clusta
will work in conjunction with West Midlands-based agency Room 251.
Visit the new MG site at www.mg-uk.co.uk
The Return of TVR?
AUTOCAR.co.uk 8th October, 2007
TVR, the stalled Lancashire sports car manufacturer, is about to
unveil plans to start building cars after 18 months in the wilderness —
provided it can raise the cash. A revised but familiar-sounding recovery plan
to assemble a mostly UK-based team of chassis and body suppliers, to utilize
a stock of ready-built engines, and bring everything together in a final assembly
operation at Bertone in Italy was revealed last week to a 60-strong UK meeting
of dealers and potential investors from Europe, Asia and America.
Guests attended a seminar at the Midlands HQ of Ricardo, the engineering
consultancy TVR has tasked with converting its 4.0-litre slant-six engine to
400 bhp, Euro 5 specification. They heard presentations from TVR’s managing
director, David Oxley, from Ricardo, from trim suppliers IM Kelly and from Bertone,
who view the TVR business as a way of starting to fill an assembly plant which
once built up to 30,000 cars a year.
The following day they visited Vauxhall’s Millbrook test
track to sample three ’07 spec TVRs which the company wants to make in
Italy until revised models come on stream in 2009. Delegates were told the company
aimed to be selling cars again early next year, with production targets of 2000
units in 2008 and 5000 before the end of the decade.
It’s no surprise that many elements of the recovery plan
are familiar: TVR Engineering is still owned by Russian Nikolai Smolenski who
acquired it for a reputed £14 million in 2004 but struck financial trouble
last year when it was forced from its long-time Blackpool HQ. Smolenski briefly
lost the company but soon re-purchased it from administrators.
Around the turn of the year, he apparently failed to complete a
move to sell the whole operation to a pair of Florida-based car-trade millionaires,
Adam Burdette and Jean Michel Santacreu, though the pair were present at last
week’s meetings and are believed still to be interested in selling the
TVRs in the US, where they estimate annual demand at 2000 units-plus.
Though much of the plan echoes Smolenski’s pre-upheaval aims,
while TVR has been out of the news it has done a deal with Lancashire-based
Multipart, a components supply giant which is already supplying dealers with
much-needed parts. Multipart is understood to be storing some important TVR
properties — jigs, moulds, plans and as many as 80 ready-built engines
— which were previously at the old Blackpool headquarters in Bristol Avenue.
TVR’s plan is, as before, to establish a head office and design centre
in Lancaster.
Smolenski, believed to be living in Vienna, did not attend last
weeks’ gatherings and attendees were given few details of how the new
company would be financed. But it is believed a decision on whether to proceed
with the plan will be made by the middle of October, and TVR’s managers
want contracts with major suppliers to be signed by the end of the month, so
production can be re-started quickly. The big question-mark is over financing,
and for now, no-one is supplying an answer.
Marcos goes into administration
AUTOCAR.co.uk 8th October, 2007
British sports car firm Marcos Engineering has entered administration.
The company has said that it intends to complete existing work in progress,
but it will wind up the business and sell its assets. Marcos was founded in
1959 by Jem Marsh and Frank Costin, initially building cars with a composite
chassis and a lower body made from plywood. It went into administration in 2000,
before being revived by entrepreneur Tony Stelliga in 2002.
Under Stelliga, Marcos developed the new TSO and GT models, powered
by a Corvette LS6 engine. Despite much critical acclaim for the new car on initial
drives, Marcos reckoned the 'continuing cost of capital' means that the potential
for profit has faded, and therefore decided that administration was the best
way of returning value to the company’s shareholders.
'Regrettably, despite the extraordinary efforts of our employees,
suppliers and dealers, we simply could not attain a profit point, reduce our
cost base or raise the necessary capital to sustain the business,” said
Stelliga. My sincerest gratitude goes out to everyone that worked relentlessly
to revive the great British sports car company one more time.'
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MINI
MINI heads for the hills
Auto Express
It’s not only Triumph that’s aiming to put Britain
on the map for small cars. MINI is set to head into uncharted territory in 2009
with an off-road evolution of its supermini – tipped to be badged the
Monte. Based on the recently launched Clubman, the newcomer is described by
company insiders as a sports activity vehicle, and it has been pencilled
in to make its world debut at the Paris Motor Show next September.
While it’s front-wheel drive only, the car will sport a series
of modifications to adapt it to the rough stuff. As well as offering tall suspension,
the Monte will be fitted with a tough off-road bodykit, and will also be the
first MINI ever to be fitted with five doors – a feature that’s
likely to have an enormous impact on the model’s practicality. Engine
details are still scarce, but a source told Auto Express that the car will be
available with a choice of 1.6-litre petrol and 1.4-litre diesel units. Meanwhile,
prices are expected to start at around £2000 more than the Clubman.
A larger diesel powerplant is also under review, although this
is likely to be reserved for a flagship variant. To ensure the new model’s
0-60mph performance is matched by MINI’s green credentials, parent firm
BMW is promising to develop an enhanced version of the Efficient Dynamics package
that is already available on the current machine.
As well as featuring stop-start engine technology to help reduce
fuel use in stationary traffic, this series of modifications incorporates
an ultra-efficient gearbox and a regenerative braking system. Electric motors
have been discounted, although BMW has not ruled out the idea of tuning the
new car to run on biofuels.
The arrival of the Monte is a key moment for the MINI brand, as
it represents the end of development of the second generation of the supermini.
At the moment, the manufacturer has no plans to introduce any other variants
of the MINI family, and will focus instead on bringing special editions of its
existing cars to showrooms – including a high-performance John Cooper
Works version.
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Triumph TR is back!
Auto Express
Picture: Auto Express
Auto Express can exclusively uncover exciting plans by BMW to bring
back one of Britain’s best-loved marques – Triumph is on to a winner!
Last week, BMW announced its plans for the future. Part of this strategy was
the introduction of the long-awaited SUV version of the MINI – but bosses
also described why they are aiming to expand the company with new brands.
Despite speculation that Jaguar, Land Rover and Volvo are
in the frame as targets for acquisition, our sources have suggested that BMW
will add to its portfolio by reviving a classic badge – and Triumph is
top of the list. The historic British marque, which the maker took over when
it bought MG Rover in 1994, would be a clear choice to market a rival for the
new, Chinese-owned MG TF roadster.
Our pictures reveal what a modern Triumph car could look like,
taking its styling inspiration from the classic TR4. Just as the new MINI’s
design was heavily influenced by the Sixties classic, a reinvented Triumph would
be a retro remake. BMW is committed to launching more premium models as it bids
to gain a bigger slice of the most lucrative areas of the new car market. And
these pictures show how an upmarket two-seater could offer a premium alternative
to the Mazda MX-5. With a raft of class-leading engines and platforms in the
BMW stable, the roadster would be a force to be reckoned with. However,
there are obstacles to overcome before any Triumph car could be built.
One problem may be Triumph the motorcycle manufacturer. The firm
confirmed the car and motorbike brands are separately owned. A spokeswoman for
the firm told us: "BMW owns the rights to Triumph Cars, which is entirely
separate from Triumph Motorcycles. We are therefore not privy to any activities
they may be planning and are unable to comment".
As well as using the household name to market a new roadster,
BMW would benefit from having Triumph models to test its low-weight materials
and new technologies before using them on mainstream cars. But bosses will
be watching with interest Audi’s relationship with the Austrian motorbike
maker KTM, which has already led to the production of the X-Bow track-day
car.
In a recent statement, chairman of the board of management at the
blue propellor, Norbert Reithofer, said: “The BMW Group explored all the
options for future growth during the strategic review, including potential acquisitions
or the creation of a fourth brand. However, this would require the new automotive
brand to be a perfect fit for the company.”
No official comment has been made about the Triumph project, but
British car fans can expect to hear more on the ambitious plans by the end of
the year.
AR Comment:
We've fired shots at BMW, MINI and Triumph on several previous
occasions, most notably in
January 2006, when we heard that BMW's Design Works studio had been rendering
Triumph roadster schemes. In the past, the situation was that the German company
has been tempted to look at a Triumph revival, but each time, concluded that
the return on the investment was not worth it.
However, with the recent unveiling of future product plans, the
need to expand the lower end of the range in order to bring down CO2 averages,
and to expand the MINI franchise and stop dealers needing to rely in a single
marque dealer network, the Triumph plan could make sense.
We'll be watching this one with interest...
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MG franchise for Wilcox of Wickwar
CLIVE GOLDTHORP
Some of AE Wilcox's fine BMC>MGs...
NAC MG (UK) Limited are currently recruiting dealers in preparation
for the re-launch of the MG TF. However, the recent confirmation that A.E. Wilcox
and Son Limited of Wickwar, near Chipping Sodbury in Gloucestershire are to
be awarded an MG franchise really caught our eye at Austin-Rover.Co.UK because
the company’s association with the BMC>MG story dates back to the 1930s.
A.E. Wilcox and Son Limited’s business was originally founded
in 1924 and first became an Austin dealership in c.1936. The business retained
the successor franchises for an unbroken period of almost seventy years until
MG Rover Group Limited went into administration in April, 2005. The business
was started by Albert Wilcox whose son, Roy, succeeded him and whose two grandsons,
Tim (45) and Jon (48), are the company’s current Directors.
However, what really underlines Tim and Jon’s commitment
to BMC>MG is the successful strategy which A.E. Wilcox and Son Limited adopted
after MG Rover Group Limited’s administration. Tim and Jon both believed
that there would still be a latent demand for MGs and Rovers and identified
a niche for their company to exploit. A.E. Wilcox and Son Limited’s proactive
approach has resulted in the company selling more than 300 new MGs and Rovers
(sourced from Capital Bank plc, PwC and other former MG Rover dealers) since
April, 2005 and has enabled the company to recoup at least some of the losses
caused by MG Rover Group Limited’s demise.
The company’s well-targeted national advertising campaign
in Telegraph Motoring generated sales to customers from as far afield as Manchester
and Newcastle-upon-Tyne while one of a batch of six left-hand drive cars, an
MG ZR, was even sold to a customer in Slovakia! Tim has just sold a black 07/57
MG ZT 260 V8 which he believes to be one of the last two to be registered but
still has an MG TF 135, a Rover 45 1.4 GLi SVP and a Rover 25 Commerce 2.0 Turbo
Diesel van available for 07/57 registration.
Tim and Jon are still actively buying used late model MGs and Rovers
and selling them on a nationwide basis. Indeed, one customer recently left his
home in Norwich at 3.00am and was in Wickwar for 8.00am in order to collect
his 05/55 MG ZR! The two brothers have also acquired the parts stocks of fifteen
to twenty former BMC>MG dealers during the last two decades and, additionally,
purchased a substantial parts inventory from MG Rover Group Limited’s
Administrators so are now keen to expand A.E. Wilcox and Son Limited’s
existing mail order parts supply business. The two Directors also intend to
retain the company’s XPart AutoService centre status and are developing
a niche as an MG ZT 260 V8/Rover 75 V8 service specialist.
A.E. Wilcox and Son Limited was awarded a Citroen franchise in
January, 2007 and, subject to the obtaining of Planning Permission, Tim and
John now aim to re-develop the company’s second site in Wickwar for Citroen
within the next two years. However, in the meantime, the brothers currently
expect the company’s new MG franchise to become operational in early 2008
although, like all other BMC>MG enthusiasts, they are monitoring developments
in China with considerable interest!
Tim and Jon have both been part of the BMC>MG story since their
childhood and are confirmed BMC>MG enthusiasts with a collection of classics
which include the following cars:
c.1961 Austin A35 Grey, one owner with the original Bill of Sale
and brochure!
1961 Land Rover LWB/Petrol, one owner.
1969 Mini Cooper Whitehall Beige/White in original condition but in need of
some restoration.
1969 Mini Cooper Island Blue/White – an on-going restoration project.
1973 Triumph GT6 Mk2 Brown, 91,000m.
1974 Mini Clubman Orange, 30,000m, one owner and originally supplied new by
A.E. Wilcox and Son Limited.
1980 Mini 1275GT Orange, 43,000m, one family owner from new.
1980 Austin Allegro Vanden Plas Brown, 28,000m – one of the last sold!
1982 Mini Pick-up White, one owner.
1996 Mini Cooper 35 Green/White, No.1/200, 41miles and Waxyol-treated from new
with all the paperwork!
Tim and Jon also have a 1929 Standard, a 1930s Wolseley 15 and
Triumph Roadster similar to the one used in the “Bergerac” TV series
which are also awaiting restoration but, unsurprisingly, none of the above vehicles
are for sale!
For more information, go to: www.aewilcox.co.uk/wilcoxusedcarscompletelist.htm
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News digest
Compiled by CLIVE GOLDTHORP
The Sale Of Jaguar And Land Rover
Jaguar and Land Rover move closer towards life outside the protective
bosom of the Ford Premier Automotive Division. We're still no closer to finding
out the identity of the companies' next owners, though...
Automotive News Europe 1st October, 2007
New
day nears for Jaguar-Land Rover, by James Franey
Tata and private equity giants are among those with a chance to take over British
brands
One of India’s biggest automakers and some of the largest
global private equity firms are considering bids for Jaguar and Land Rover.
Ford Motor is expected to select the buyer early next year.
During a Web cast from the IAA in Frankfurt September 12, Ford
Executive Vice President Lewis Booth said the automaker needs the money and
the relief that a sale would bring. Worldwide, Ford lost $12.7 billion (€9.2
billion) last year. Ford CEO Alan Mulally said a priority is fixing the automaker’s
struggling North American operations, which last year lost $9.9 billion.
Analysts say potential buyers will need to cut costs further and
make large capital investments to restore Jaguar and Land Rover to health and
make both brands competitive. While Land Rover made a €144 million profit
last year, Jaguar continues to lose money. Last year, it lost €380 million.
The year before, it posted a €787 million shortfall.
Here is a look at some of the companies that are considering a
bid or are rumored to be thinking about it.
Cerberus
Cerberus Capital Management has not confirmed an interest in Jaguar
and Land Rover. However, media reports and analysts say the firm is interested.
If it did purchase the two British premium brands, Land Rover could share platforms
with Chrysler’s Jeep brand. Earlier this year Cerberus purchased 80.1
percent of the Chrysler group from DaimlerChrysler for $7.4 billion.
'Jaguar and Land Rover would make a nice bolt-on to Chrysler as
they both operate in segments where Chrysler doesn’t,' said Phil Dunne,
vice president at AT Kearney Consulting, London. 'The two brands would also
benefit from being part of a large automaker, [providing] greater buying power
and an extended distribution network.'
But Dunne doubts whether Cerberus has sufficient management resources
to run another automaker so soon after the purchase of Chrysler.
One Equity Partners
One Equity Partners is interested in Jaguar and Land Rover, according
to news reports. One Equity Partners, however, did not confirm whether it pursuing
the brands. One Equity Partners is the private equity arm of the US investment
bank JP Morgan and manages $5 billion of investments. Former Ford Motor CEO
Jacques Nasser is a managing director.
Nasser set up Ford’s Premier Automotive Group in 1999, a
subsidiary that oversees the US automaker’s premium brand operations.
PAG includes Jaguar, Land Rover and Volvo. Tom Donnelly, professor of automotive
business at Coventry University, central England, said any private equity buyer
will need Ford to retain an interest in the business so Jaguar and Land Rover
can access the US automaker’s technology.
Ripplewood
Ripplewood, a US equity firm, has connections with the automotive
industry. The company owns Honsel, a metal castings supplier to BMW, Audi and
Volvo. It also has former Chrysler Vice Chairman Tom Stallkamp on its payroll.
According to Ripplewood’s Web site, Stallkamp is lead director of Baxter
International, a global health care company. Additionally, former Jaguar CEO
Nick Scheele is advising Ripplewood on a Jaguar-Land Rover bid.
Stephen Cheetham, a London-based automotive analyst at Bernstein
Research, said that Scheele would bring credibility to the Ripplewood bid but
argued that Jaguar is simply too small to compete in the premium car segment.
'Even with the leverage of Ford technology, it had a very difficult
time,' said Cheetham. 'I struggle to see how Ripplewood could put a deal together.
The ongoing cash spend needed to make Jaguar competitive suggests it is not
viable as a stand-alone private equity investment, except perhaps as an asset-stripping
operation.'
Tata Motors
Tata Motors is part of the Tata Group, an Indian conglomerate that
also has interests in steel and telecommunications.
Tata’s automotive division is the second-largest car manufacturer
in India, holding a 16.5 percent share of the passenger car market there. Tata
posted a profit after tax of 19.13 trillion rupees (about €344 million)
in the fiscal year ended March 31, 2007. In a television interview in August,
Chairman Ratan Tata said he wanted Jaguar and Land Rover because the brands
would give his company a global presence and end its reliance on one economy,
India.
Tata Motors sold 580,280 vehicles worldwide in the latest financial
year. Worried about the potential sale to Tata is the Unite union, representing
19,000 Jaguar and Land Rover workers in the UK. If the brands are sold, Unite
wants guarantees that jobs will not be moved to India.
TPG Capital
A TPG Capital spokesman said that TPG has started due diligence
on both brands, but it refused to elaborate on how the bid process was progressing.
TPG has never owned a car company, but the firm did turnaround Ducati, an Italian
motorcycle brand. It invested $475 million in Ducati over a 10-year period.
TPG sold Ducati in February 2006 to an Italian private equity firm, Investindustrial
Holdings.
Birmingham Post 1st October, 2007
New
bidder in race for Land Rover and Jaguar
Another private equity bidder has emerged in the race to buy Jaguar and Land
Rover from Ford. Terra Firma, the group led by City financier Guy Hands, has
requested sale documents from the American carmaker. Reports said it has also
carried out some due diligence on a possible bid for the two luxury carmakers
which together employ 15,000 people in the Midlands.
Ford, which is fighting losses of $12.7 billion last year, said
it will make a decision on their sale by the end of the year. Terra Firma declined
to comment yesterday. The company is seen is seen as having its hands full following
its £5.8 billion acquisition of EMI, and it is uncertain whether it will
bid. Other private equity bidders include Cerberus Capital Management, TPG,
Ripplewood Holdings and One Equity Partners.
TPG, Ripplewood, and One Equity are being advised by former Ford
executives Sir Nick Scheele, Bob Dover and Jac Nasser. Indian industrial groups
Tata and Mahindra & Mahindra are also thought to be looking at launching
bids for Jaguar and Land Rover. Ford is expected to ask for indicative offers
next month, although it is thought the interested buyers are seeking a firmer
commitment the Dearborn firm will sell Jaguar and Land Rover before they commit
more money to due diligence.
An industry source said: 'There is a feeling among some of the
bidders that Ford is not giving all the information they could. It certainly
seems to be taking a while. Maybe Ford won't want to sell, Land Rover is doing
very well and Jaguar has a better control on its costs.'
Land Rover is thought to have enjoyed bumper sales in September
and is on course for a record sales year - helped by the successful launch of
entry model Freelander 2. 'People are wondering whether Ford intends to sell
after all. Maybe the new chief executive [Alan Mulally] came in and saw the
historic results and sees companies which are not successful and facing problems.
But now these businesses are not doing badly at all. Ford says it wants to sell
these businesses by the end of the year, but they do not seem to be particularly
energised to do so.'
Ford has said it has made no final decision on whether to sell
the two companies, while it is also exploring options for its Volvo brand. But
it did say a sale was probable when it reported its second quarter sales in
July. Bidders will be watching a round of wage negotiations at Land Rover which
are due to take place next week which may give some indication of the workforce's
flexibility on achieving productivity gains.
A spokesman for Ford said: 'We are not confirming names or numbers
of interested parties, but we have been pleased with the number and quality
of interested parties.'
Financial Times 1st October, 2007
Tata
and Jaguar
At a recent awards ceremony in Mumbai for Indian companies investing in the
UK, the Tata Group won 'Investor of the Year'. That is little wonder. Cash-rich
Tata, one of India’s largest private conglomerates, has already done Britain
a service by taking over and promising to rejuvenate steelmaker Corus. Now it
is considering acquiring another struggling legacy company – Jaguar, the
lossmaking marque being sold alongside Land Rover by Ford.
Tata has the estimated $3bn required to buy Jaguar and Land Rover.
The group’s automotive unit, Tata Motors, India’s third largest
carmaker, is virtually debt-free after stripping out its vehicle finance business.
The problem is how such an acquisition fits with Tata’s strategy of developing
low-cost cars for emerging markets. Tata already faces challenges with a project
to develop the world’s cheapest passenger vehicle, the 'one lakh car'.
This will retail at about $2500. But rising raw material costs are hampering
the project.
Tata is also fighting market share declines in its domestic car
business. Analysts worry that consumers are growing tired of Tata’s ageing
models and sales service – the group ranked at the bottom of JD Power’s
Asia Pacific 2007 India sales satisfaction index study. This is not a great
starting point for acquiring two top luxury brands. But the British marques
would give Tata greater international distribution, a broader product range
and might help enhance its customer service skills.
The Tata group has one of India’s most capable management
teams. It has a good record with other deals, such as Tetley Tea in 2000. Even
so, investors seem unhappy with a Jaguar takeover – Tata Motors’
shares have underperformed the market since talk of the deal first surfaced.
Winning awards for investment is one thing; turning a profit is another. Perhaps
Tata should hit the brakes on Jaguar while it still can.
The Economic Times
Jaguar,
Land Rover Tatas' major client says a group firm
Indian corporate conglomerate Tatas' takeover bid for Jaguar and Land Rover
(JLR), the UK brands of the American auto giant Ford, may be still hanging in
balance, but the group enjoys a long and close relationship (about four-year
old) with the target company.
"JLR is one of our most important strategic clients,"
said David Myers, Chief Financial Officer of INCAT Ltd, a UK-based Tata Technologies
company engaged in providing engineering and design services primarily to automotive
and aerospace industries. We have over 200 clients in the UK and JLR is certainly
one of the most important among them," Myers told a group of visiting Indian
journalists here
While declining to comment on the intended takeover bid for JLR
by Tata Motors, another group company, Myers said the relationship was close
to four years old. We have helped them (JLR) with designing software for their
portfolio and currently we have a team of about 60 INCAT engineers working at
JLR," he added.
Earlier yesterday, Tata group's UK-based subsidiary Tata Ltd Managing
Director S A Hasan had said the JLR deal was very much in the offing and the
group was quite serious about it. Incidentally, Myers said Tata Motors is also
INCAT's biggest customer across the world. Another Tata group company and the
biggest IT firm in India, TCS, also shares some of the product offerings from
the INCAT stable, Myers said.
"There have been occasions when we have worked with TCS. It
is also one of our biggest competitors in the market as it has also been providing
some similar products and services, INCAT CFO said.
The SAIC Group/Yuejin Group Merger.
Putting the brakes on SAIC/NAC specualtion...
SAIC Group Press Release 25th September, 2007
On September 25th, SAIC made a statement through their listed company,
dismissing erroneous reporting in the article 'Co-operation deal-signing in
October, NAC waits as SAIC compiles evaluation report' published by '21st Century
Economic Report'.
SAIC stated SAIC formed a taskforce with the Yuejin Group, the
parent company of NAC, they had discussion based on the 'Letter of Intent on
Comprehensive Collaboration' signed on July 27th this year, and no definitive
plan has been set, and there is no such plan to sign a technical collaboration
agreement at the end of this month. SAIC’s assessment on NAC is still
underway, and the timetable for auditing, assessment and other tasks has not
be confirmed. Topic regarding the value of the assets was not mentioned in the
discussion. The company does not hold any undisclosed information that should
be disclosed.
SAIC wishes to remind the public that the Shanghai Stock Exchange
website is the website appointed by them as official channel of press release
and other information, as well as the newspaper 'Shanghai Stock News', 'China
Stock News' and 'Stock Times'.
Source: finance.sina.com.cn/stock/t/2...01688405.shtml
MINI
Motor Authority 30th September, 2007
BMW and PSA to end joint engine development?
Unlikely bedmates BMW and the PSA Peugeot Citroen Group are breaking up - or
at least asking each other for some space. The two companies had joined forces
in recent years to produce a range of 1.4L to 1.6L motors, powering BMW’s
second-generation MINI and cars from Peugeot and Citroen. The venture was originally
intended to help the auto makers to improve engine technology in the fiercely
competitive compact car segment, while saving money by sharing development costs.
BMW development executive Klaus Draeger recently told a German
industry publication that cooperation with PSA was effectively ended. This news
comes despite plans in late 2006 to evaluate the expansion of joint engine development
efforts. Despite the success of the motors spawned by the joint venture, the
engines were quite expensive to produce according to PSA boss Christian Streiff.
This summer, Mercedes proposed a closer working relationship with
BMW, especially with engine technology. BMW hasn’t agreed to the partnership,
however, and with the PSA deal now out of the picture, it looks like BMW will
be developing the lion’s share of future engines on its own.
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SMC now taking orders for the TF...
...as the LE is caught testing at Millbrook
MG Enthusiast
Long-time MG Rover supporters, and one of the first dealer networks
to establish a relationship with NAC-MG, SMC Motors, is now taking orders for
the TF. According to its new website, 'Orders can be placed now for delivery
in the first six months of 2008.' This all-but confirms our previous story concerning
the launch delays...
Although no prices are being quoted currently, specifications are
certainly competitive, and to bolster consumer confidence, the TF is being offered
with a three-year/60,000 mile warranty.
Caught on video and posted on You Tube is a development MG TF LE
500 undergoing testing at the Millbrook proving ground's small handling circuit.
The car in question is probably one of the pre-production batch that has been
produced at Longbridge in anticipation of ramping up to a full production run
early next year. Either way, it's an interesting find, and it clearly shows
there's poise in that chassis.
For more information, visit the SMC website.
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Kevin Howe unearthed
KEITH ADAMS
FOR
all those who wonder where the MG Rover management team that ended up being
collectively known as the 'Phoenix Four' have got to, we've some interesting
news for you - Kevin Howe, MG Rover's controversial Managing Director - and
chief architect of the questionable styling of the RDX60 concept - has surfaced
in the USA.
From the moment it became clear that MG Rover's future was about
to implode, Kevin Howe became the most notable member of the company's management
to disappear from view. Readers with long memories will recall that, during
the fateful week in April 2005 when MG Rover fell into administration and the
government handed over a temporary £6.5m loan to keep Longbridge ticking
over, Kevin Howe was holidaying in the USA... and he made no effort to return
here and face the music.
Since then, it emerged that Kevin allegedly made a number of questionable
decisions during his time managing the company, not least choosing the RDX60
styling scheme that the Peter Stevens styling team had submitted as a deliberate
lame duck. Ex-Longbridge workers who do chose to go on the record about Kevin
have been less than complementary - one engineer describing MGR under his rule
as being a case of 'Lions being led by donkeys...'
In a recent blog by Paul Stowe, a fascinating insight into his
character emerged. He recalled, 'I remember flying back from Mumbai with Kevin
Howe – I travelled in Economy, his Directors travelled in Business and
he went on his own in First Class! We arrived at Mumbai airport to long and
arduous queues, Mr Howe decided that the Crew channel was shorter and barged
there way into the departure lounge – leaving the rest of us to tackle
the Indian authorities.
'Finally on the plane, one of our team became ill somewhere over
middle Europe, in his attempt to make the toilets; he fell and smashed his glasses
– leaving a shard of glass piercing an eyeball. Concerned, the flight
attendants called for medical support. Kevin perturbed by the ensuing chaos
decided to take a look for himself. On hearing the Doctor's call to land as
quickly as possible, Kevin demanded that the flight continued to its destination.
On questioning the patient, the Doctor could see that the plane was not landing
anywhere else but Heathrow! Kevin’s whispered words to the patient gave
him one option... not comfort.'
Kevin also proved fast and loose with the careers of those working
under him - with one hard pushed member of the PR team once telling us that
if one difficult decision couldn't be met... they would be fired. Just like
that.
Rumours of Kevin's whereabouts have been circulating for some time,
but AR can now exclusively reveal that he's now working in the USA. Having earned
more than £1m during his time in MGR management, Kevin has bought an exclusive
furniture sales outlet in Naples, Florida under the name Posh
Space. Our informant joked, 'I couldn't help but laugh when the now de-bearded
Howe told me... was he trying to cash in on Posh and Becks in some bizarre way?'
As well as being in the furniture business, Kevin's allegedly building
a new property in Naples. 'A million dollar pad, for someone who wasn't afraid
to splash is cash', as our informant relates. Paul Stowe recently told us that
Kevin's family is still in the UK, 'His wife still uses the Porsche Cayenne
to drop the kids off at school'.
An interesting financial contrast to the £2800 redundancy
that the Longbridge workers all received.
To contact Posh Space:
Posh Space
5002 Tamiami Trail North
Naples, Florida, 34103
Tel: (239) 261-5532
Fax: (239) 261-7403
Email: poshspace@poshspace.net
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SsangYong Wz:
MG's potential BMW Concept CS/Gran Turismo contender?
CLIVE GOLDTHORP
THE Jaguar XF and MINI Clubman were clearly the stars of last month's
Frankfurt Motor Show in the eyes of most BMC>MG enthusiasts. However, AR's
Editorial Team believes that the European debut of the SsangYong Wz concept
might just have given us our first glimpse of a new MG flagship to compete with
BMW’s recently confirmed Concept CS/Gran Turismo.
Shanghai Automotive Group Company Limited (Shanghai Auto) has a
controlling 51 per cent stake in SsangYong Motor Company (SsangYong). SsangYong
and Shanghai Auto’s parent company, SAIC Motor Corporation Limited (SAIC
Motor/Roewe), are jointly developing five platforms, five engines (two diesel
and three petrol) and a total of thirty models for launch between 2008 and 2011.
SsangYong say that Wz stands for 'World Class, World Standard,
World Premium Zenith.' The Wz is a fraction longer than the current Mercedes-Benz
S-Class but SsangYong describe the car as a 'sports sedan' which demonstrates
the company’s 'will to manufacture a premium large-sized sedan that can
compete with world class luxury sedans in the global market based on quality
and performance with cutting edge technology.'
A number of Automotive Industry pundits have implied that SsangYong’s
aspirations for the Wz might be a tad ambitious. However, SsangYong and SAIC
Motor clearly intend the Wz to define the standards for the other models currently
under development and the concept features a 3.6 V6 GDi twin turbo engine producing
361bhp, All Wheel Drive mated to a seven-speed automatic transmission with a
manual override, a Lane Departure Warning System (LDWS), self-levelling Electronic
Air Suspension (EAS), Adaptive Cruise Control (ACC) and the Around Monitoring
System (AMS) – this last feature uses camera sensors to identify obstacles
around the vehicle when parking and entering road junctions.
SAIC Motor’s parent company, Shanghai Automotive Industry
Corporation (Group) (SAIC Group), and NAC MG’s parent company, Yuejin
Motor (Group) Corporation (Yuejin), are continuing negotiations which may well
result in an MG Roewe merger and will, no doubt, have identified the need for
a combined 'SAIC MG' to devise a completely integrated Brand Development Strategy
and Future Model Programme with some urgency.
Austin-Rover.Co.UK recently interviewed NAC MG’s former Quality
Director, Paul Stowe. Paul described the two options for brand development rumoured
to be under consideration and favoured the suggestion that 'SAIC MG' should
retain the Roewe brand in China and focus on the re-launched MG marque internationally.
MG certainly has a higher global profile and greater international potential
than either Roewe or SsangYong so there must, at least, be a chance that the
SsangYong Wz will be wearing MG badges when the final production version goes
on sale in Europe.
However, a merged “SAIC MG’s” brand portfolio
would not only include the extant brands of MG, Roewe and SsangYong but also
the dormant, NAC MG-owned, brands of Austin and Sterling. Austin-Rover.Co.UK’s
Editor first raised the prospect of a 'Chinese Leyland' some months ago and
the Editorial Team now reckons that an ambitious 'SAIC MG' might well follow
the Hyundai/Kia model by developing two parallel brands to compete in different
tiers of the 'Global Automotive Brand Hierarchy.' MG may, in that case, be marketed
as a Value/Sporting brand competing with the likes of Kia, Mazda and SEAT with
Sterling (nee Roewe/SsangYong) being positioned as a Premium/Luxury brand competing
with the likes of Saab, Volkswagen and Volvo. The original Sterling badges were,
after all, the same shape and size as the then current Rover badges and so would,
presumably, be almost identical to today’s Roewe badges – a neat
economy of scale!
AR's Editorial Team hopes that, in any event, a media-savvy 'SAIC
MG' will follow the lead recently given by the likes of BMW AG and Fiat Group
Automobiles S.p.A. by releasing an outline of the Brand Development Strategy
and Future Model Programme…
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A new Hydragas resource
PETER MELVILLE
Owners of cars with Hydrolastic or Hydragas suspension will be
pleased to see the service offered by my new website, the Hydragas Register.
Thanks to a few days of coding and the submissions of fellow enthusiasts, motorists
can now search in their local area for parts and services for their suspension.
Starting off with a growing list of garages and individuals offering
a pump-up service, I'm currently working on a page of technical specifications
for each model and a page for mail-order parts from various online suppliers.
An improved search facility is also on the way. If you have any suggestions
or additions, please contact me through the website.
The Hydragas Register can be found at www.hydragas.co.uk.
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